How to Stake Fantom (FTM): A Comprehensive Guide

Fantom (FTM) is a high-performance, scalable, and secure smart-contract platform designed to overcome the limitations of previous blockchain technologies. By staking FTM, investors can earn passive income while contributing to the network’s security and efficiency. This guide explains the process of staking Fantom, the benefits, and the various strategies available.

Understanding Fantom and Staking

What is Fantom?

Fantom is a layer-1 blockchain known for its speed and low-cost transactions. It uses a consensus mechanism called Lachesis, an asynchronous Byzantine Fault Tolerant (aBFT) protocol, which allows for high throughput and fast finality.

What is Staking?

Staking involves locking up your cryptocurrency in a blockchain network to support its operations. In return, you earn rewards. By staking FTM, you help secure the Fantom network and validate transactions.

Benefits of Staking Fantom

1. Passive Income: Earn rewards in the form of additional FTM tokens.
2. Network Security: Contribute to the security and efficiency of the Fantom network.
3. Decentralization: Support the decentralized nature of blockchain technology.

How to Stake Fantom (FTM)

Prerequisites

Before you begin staking, ensure you have the following:

1. MetaMask or compatible wallet: Installed and set up on your device.
2. FTM Tokens: Sufficient FTM in your wallet to stake.

Step-by-Step Guide

Step 1: Set Up Your Wallet

1. Install MetaMask: Download and install MetaMask from the official website.
2. Create a Wallet: Follow the on-screen instructions to create a new wallet. Store your seed phrase securely.

Step 2: Add Fantom Network to MetaMask

1. Open MetaMask: Click on the MetaMask icon in your browser.
2. Network Dropdown: Click on the network dropdown and select “Add Network.”
3. Enter Network Details: Input the following details:
   • Network Name: Fantom Opera
   • New RPC URL: https://rpc.ftm.tools/
   • Chain ID: 250
   • Currency Symbol: FTM
   • Block Explorer URL: https://ftmscan.com/
4. Save: Click “Save” to add the Fantom network.

Step 3: Deposit FTM into Your Wallet

1. Transfer FTM: Send FTM from an exchange or another wallet to your MetaMask wallet.
2. Confirm Receipt: Ensure the FTM tokens appear in your MetaMask wallet under the Fantom network.

Step 4: Stake Your FTM

1. Visit the Fantom Staking Page: Go to the official Fantom staking website.
2. Connect Wallet: Connect your MetaMask wallet to the staking platform.
3. Select Staking Option: Choose between “Staking” and “Delegation” based on your preference.
4. Enter Staking Details: Specify the amount of FTM you want to stake and select a validator.
5. Confirm Transaction: Confirm the staking transaction in MetaMask.

Staking Strategies

Fluid Staking

Fluid staking allows you to stake FTM for varying periods, ranging from 2 weeks to 365 days. The longer you stake, the higher the rewards. This flexibility lets you choose a staking period that suits your investment goals.

Liquid Staking

Liquid staking involves minting synthetic FTM (sFTM) tokens that can be used for additional DeFi activities, such as liquidity mining and yield farming. This strategy provides higher returns by leveraging your staked assets.

Custodial Staking

Custodial staking lets you stake FTM on centralized exchanges like Binance and Coinbase. Although the rewards might be lower (around 1%), this method offers ease of use and accessibility.

Where to Stake Fantom (FTM)

Native Blockchain Network

Staking directly on the Fantom network through the official staking platform provides the highest rewards and control over your assets.

Ledger Wallet

Using a hardware wallet like Ledger for staking enhances security. You can stake directly from your Fantom fWallet by interacting with the Ledger Nano S application.

Coinbase Wallet

Coinbase Wallet supports the Fantom network, allowing you to stake FTM and interact with Fantom dApps seamlessly.

Binance

Binance offers various staking options with different lock-up periods (30, 60, 120 days) and corresponding reward rates. The longer the staking period, the higher the potential returns, up to 14%.

KuCoin

Similar to Binance, KuCoin allows you to stake FTM by depositing tokens and selecting a suitable product based on rewards and lock-up periods.

Is Staking FTM Safe?

Staking FTM is generally safe as the validator cannot access your staked tokens. However, ensure you do not lose your mnemonic phrase or private key. It’s also important to choose reputable validators to minimize risks. Validators with active communities and transparent operations are typically more reliable.

Running a Fantom Node

Running a validator node involves setting up and maintaining a full node, participating in consensus, and generating new blocks. This process requires a significant investment in hardware and a minimum stake of 500,000 FTM.

Requirements

• Minimum Stake: 500,000 FTM
• Hardware: AWS EC2 m5.xlarge, 4 vCPUs, 4.5 TB SSD storage
• Rewards: Approximately 13% APY, varying based on total staked amount

Steps

1. Set Up Hardware: Use your own hardware or a cloud provider like AWS.
2. Install Tools: Install necessary building tools, Go, and Opera.
3. Register Node: Create a validator wallet and register your node on-chain.
4. Run Node: Restart the node in validator mode and manage it using the appropriate commands.

How Much Can You Earn Staking Fantom?

The earnings from staking FTM depend on the lock-up period and the amount staked. The minimum APY is 5.01% for a 14-day lock-up, while the maximum is 15.31% for a 365-day lock-up. Use the FTM staking rewards calculator to estimate potential earnings based on your staking preferences.

Conclusion

Staking Fantom (FTM) offers a lucrative way to earn passive income while supporting the network’s security and efficiency. By following this comprehensive guide, you can easily set up your wallet, stake your FTM, and choose the best staking strategy to maximize your returns. Whether you are a novice or an experienced investor, staking FTM is a valuable addition to your crypto investment portfolio.